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Chapter 3: Q. 7DQ (page 368)

What are the roles of suppliers and customers in a lean system?

Short Answer

Expert verified

Lean involves suppliers and customers as an important part of the process. Suppliers are the ones who supply the raw materials to the company and then the company uses those raw materials to produce the finished goods to deliver them to its end consumers. Suppliers and customers have an indirect relationship with each other. They are indirectly connected through the company and both of them have different roles and responsibilities.

Step by step solution

01

Role of Suppliers in a lean system

The buyer has to make sure that the suppliers have the materials to satisfy their condition or to fulfill the need for the raw materials. A lean organization helps the suppliers or guides them in training and implementation and also guides them in value creation.

02

Role of Customers in a lean system

As per the lean organization, customers are the reason for exiting their business. One of the major reasons that the lean system works so effectively is that it focuses on value creation in the eye of the customers. They believe that customers are those who work with the organization from outside of the organization.

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Most popular questions from this chapter

Question: A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has a defective content on an average of 0.04. By inspecting all items, the inspector can remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is \(9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of \)10 each when they are detected in final product testing.

  1. Should this inspection position be eliminated?

Can a supply chain become too lean? Explain your answer—using examples if possible.

Refer to Example 14.1 as the basis for this problem. Meritor hires a team of consultants. The consultants suggest partial robotic automation as well as an increase in safety stock to 12.5 percent. Meritor implements these suggestions. The result is an increase in efficiency in both the fabrication of muffler assembly and the making of catalytic converters. The muffler assembly fabrication cell now averages 16 assemblies per hour and the lead time has been decreased to two hours’ response time for a batch of 10 catalytic converters. How many kanban cards are now needed?

Question:How do you think the machine operators would react to the change?

The Toyota Production System is founded on these two philosophies.
See all solutions

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